118'708 CRM: Session 4 CRM Requires Robust Understanding, Change and Strategic Approach

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118.708 CRM Session 4CRM Requires Robust
Understanding, Change and Strategic Approach
Learning Coach Dr. Mohan Agrawal Principal
Strategy Consultant Marketing Aims
Inc. Canada www.marketingaims.com Email
magrawal_at_marketingaims.com
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Power point link

• www.marketingaims.com/files/um/

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Agenda

• Any questions before we take the test 1.
• Test 1 for 40 minutes extendable only on dominant
  need basis to another 10 minutes.
• Presentation, discussion and extension of the
  Strategic framework of CRM
• Trends in CRM software selling
• Misconception about customer loyalty
• Change management
• CRM Blueprinting for Hilton Hotels

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Towards CRM Blueprinting

• 1. Present, reflect and extend the Strategic
  Framework of CRM

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1. Defining CRM Reported in the Meta Survey on
Global 2000 Companies)

• Offered multiple, conflicting and often
  incomplete definitions of CRM.
• 78 described CRM as a modern marketing
  imperative, the other 22 of respondents define
  CRM as a set of tools and technologies.
• 64 of respondents lacked techniques to measure
  the business value of CRM.

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2 CRM is a Management Tool, encompassing all
functions, for focusing on the customer
Sales
Service
Marketing
Mfg
Product Planning
Purchasing
Spares
RD
CRM is a set of operating business processes
built around the customer
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3 CRM is the front end (customer facing)
activity. It needs to be firmly supported by all
other back-end processes.
CRM
FAST FWD
ERP
SCM
RD
MFG
PURCHASING
All improvement initiatives under the CRM Umbrella
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4 Up-trend in CRM Vending

• Siebel Systems, Oracle, PeopleSoft, Computer
  Associates International, and Cognos are the
  global major CRM vendors.
• Banks, insurance, telecom, travel and tourism,
  and pharmaceutical companies are the major buyers
  of CRM software.
• CRM software market has grown more than 50 a
  year since 1996.
• Contd

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4 Up-trend in CRM Vendingcontd..

• The Meta Group predicts the size of the market
  will grow to 67 billion in 2004.
• A recent Gartner survey of 600 companies reports
  that 33 of the responding firms had plans to
  spend more than 1 million on CRM by 2002 (Byrd
  and Dillon, 2001).

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5 Misconceptions About Customer Loyalty

• Incentives begins loyalty.
• Trial loyalty turns into continuity.
• Transaction satisfaction guarantees loyalty.
• Repeat buying proves loyalty

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5 Real Customer Loyalty

• Overall satisfaction
• Willingness to commit to an ongoing relationship
• Willingness to recommend the company to others

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6 Components of Operational and Analytical CRM

• Operational CRM effective and efficient use and
  management of people, process and technology
• Analytical CRM the measurement of people,
  process and technology

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6 CRM Sweetness lies in connecting PPT

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7 CRM needs Change Management

• Work Practices
• Facilitate decision making by extensive use of
  Database IT tools.
• E.g. A CRM package can perform a cost-benefit
  analysis of various events, thus helping us to
  choose the most appropriate event at a given
  time.
• Knowledge sharing across the organization.

• Organizational
• The entire Marketing organization has to
  re-orient itself to gear up for implementing CRM.
• CRM also requires that all functions align
  themselves for providing value to customers.
• CRM aims to provide the same experience to
  customers at all touch points

More than any other thing I wanted to know why
the guy didnt buy from me
The greatest difficulty is not to accept the new
ideas but to forget the old ones.
J.KEYNES
SAM WALTON
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7. The Effect of Change on People

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7 Lets apply Strategic CRM for Hilton Step 1
Strategy Development Process

• 2. Customer Strategy
• Examine the existing and potential customer base
• Identify the appropriate forms of segmentation
• Customer choice characteristics
• Segment granularity

• Business strategy
• Articulate the CRM Vision
• Review Industry and competitive environment
  traditional as well as newer analysis such as
  coopetition and value networks)

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THANK YOU